For many people, owning a car is as essential as food and drink. That comes with the legal obligation of paying for car insurance. Like me, you may be already tired of paying high car insurance premiums? The good news is that there are several (we count 14!) ways you can save money on your car insurance without sacrificing essential coverages. In this article, we’ll share some tips and tricks to help you reduce your car insurance premium.
Tip 1: Shop Around
The first and most important step to saving money on your car insurance is to shop around and compare quotes from different insurance providers. Use online comparison websites or consult an insurance broker to get a range of quotes and choose the best deal for you. We like Quidco because you can always bag some cashback as well when you use Quidco Compare. Sign up here and get a £1 with your first £5 of cashback.
Tip 2: Increase Your Excess
By increasing your excess, you can lower your premium. Just make sure you can afford to pay the excess in case of a claim.
Tip 3: Consider the Type of Car You Drive
Some cars are more expensive to insure than others. Before buying a car, check how much it will cost to insure. Generally, smaller and less powerful cars are cheaper to insure than bigger and more powerful ones. Also, discontinued and older models will probably carry a higher premium.
Tip 4: Secure Your Car
Cars that are fitted with security devices such as alarms, immobilisers, and tracking systems are less likely to be stolen, so insurance providers may offer lower premiums for these types of vehicles.
Tip 5: Pay Annually
If you can afford it, pay your insurance premium annually rather than monthly. Monthly payments often include additional fees and interest charges, which can add up over time.
Tip 6: Avoid Making Claims
Making too many claims can increase your insurance premium. Even a single claim will ruin your no claim bonus and affect your premiums. If possible, pay for small repairs yourself rather than making a claim to save money on your car insurance.
Tip 7: Build Up Your No-Claims Discount
Insurance providers offer discounts to drivers who don’t make any claims. The longer you go without making a claim, the bigger the discount you can receive.
Tip 8: Consider Additional Drivers
Adding an additional experienced driver with a clean driving record can sometimes reduce your insurance premium. This is a top tip for younger drivers in particular who would like to save money on car insurance.
Tip 9: Think About Your Profession
Insurance providers may view certain professions as riskier than others and charge higher premiums accordingly. However, wording your profession may impact your premium; an “offshore – Oil” engineer might be deemed riskier than an “Engineering Consultant”. Fiddle around and see how your premium changes with slightly different job titles.
Tip 10: Avoid Car Modifications
Making car modifications will most definitely affect your car insurance premiums. If you really want to modify the car, be ready for higher premiums.
Tip 11: Limit Your Mileage
Car insurance premiums are based on risk estimates. So the more time you spend on the road, the more likely you will get into a car accident and vice versa. Lower your mileage as much as practicable and benefit from lower insurance premiums and lower running costs!
Tip 12: Consider Black Box Policy
Black box policies, also known as telematics policies, fit a GPS tracker with accelerometers. They continuously monitor how fast you drive and how hard you brake. Most providers of black box policies will offer low car insurance premiums but the premiums will quickly go up if your driving style is deemed risky.
Tip 13: Renew Early
GoCompare has done the research ladies and gentlemen, if you leave your renewal to the last minute you will pay the most amount of money. Aim for renewing at least 27 days before your cover expires.
Tip 14: Consider Pay Per Mile Policy
As the name implies, pay per mile policies charge you per mile on a monthly basis. The upfront cost for this policy would be much cheaper than other policies but beware, this type of cover can be a lot more expensive if you drive a lot. These policies tend to save money if you drive less than 4000 miles a year.
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By following these tips, you can save money on your car insurance premium without sacrificing essential coverages. Remember to always provide accurate and honest information to your insurance provider, and don’t hesitate to shop around for the best deal. Subscribe below for more financial hacks!
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